Agriculture, economic growth and regional disparities in India uri icon

abstract

  • This paper investigates the process of convergence and catching-up among majorIndian states during 1980/81?2004/05?a period of economic liberalisation and acceleratedeconomic growth, and also analyses the factors that enhance economic growth and lead statestowards an identical steady state. In particular, we examine the role of agricultural conditionsin this process. Results indicate absolute divergence in income levels across states. However,after controlling for structural characteristics of states there is a strong tendency of convergenceamong states. Physical infrastructure and human capital are found to enhance economicgrowth, but alone are not sufficient for convergence. For convergence, the investment inphysical infrastructure and human resources should be accompanied by a reduction inemployment pressure on agriculture by improving labour market linkages of agriculture withnon-agricultural sectors, and by promoting growth-enhancing labour-intensive agriculturaltechnologies

publication date

  • 2011
  • 2011